F.D.I.C. v. CALHOUN

No. 93-1175.

34 F.3d 1291 (1994)

FEDERAL DEPOSIT INSURANCE CORPORATION, in its Corporate Capacity as Liquidator of the Northwest Bank, Fort Worth (White Settlement), Texas, Plaintiff-Appellant, v. Larry H. CALHOUN, et al., Defendants, Trinity Western Title Co., Defendant-Appellee, John A. Gilliam, T. Ray Guy, and Cathy Gribble Ries, Appellants.

United States Court of Appeals, Fifth Circuit.

October 17, 1994.


Attorney(s) appearing for the Case

Claudia Wilson Frost, Thomas Gibbs Gee, Jane Nenninger Bland, Baker & Botts, Houston, TX, for Guy and Cathy Ries.

Morris Harrell, Locke Purnell, Rain, Harrell, P.C., Dallas, TX, for Gilliam.

Lawrence H. Richmond, Atty., FDIC, Washington, DC, for FDIC.

R. David Broiles, Kirkley, Schmidt & Cotten, Ft. Worth, TX, for Trinity Western Title.

Before POLITZ, Chief Judge, WISDOM and SMITH, Circuit Judges.


JERRY E. SMITH, Circuit Judge:

The Federal Deposit Insurance Corporation ("FDIC") and its once outside counsel, John Gilliam, Ray Guy, and Cathy Ries ("outside counsel"), appeal the imposition of sanctions under FED.R.CIV.P. 11 and 28 U.S.C. § 1927. Because we find that the district court abused its discretion by imposing these sanctions, we reverse, 148 F.R.D. 160.

I.

The factual basis of this suit...

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